To our valued clients,
 
As you will no doubt have heard, there have been several economic announcements made this week by the federal government in response to the COVID-19 outbreak including the following:
 
Canada Emergency Wage Subsidy (CEWS). This program provides a subsidy to employers who experience a revenue decrease of at least 30% during the months of March and April as compared to the same months in 2019 and who retain staff rather than laying them off . The subsidy will cover 75% of the first $58,700 of regular salary per employee to a maximum of $847 per week per employee and is retroactive to March 15, 2020. The program is effective for 12 weeks from March 15, 2020 to June 6, 2020. Employers are expected to make best efforts to top-up employee’s salaries to 100% during the affected period. A CRA online portal will be launched shortly to enable employers to apply for the subsidy. For further details click here. Employers who are not eligible for the 75% subsidy may still be eligible for the previously announced 10% wage subsidy. For further details on the 10% subsidy click here
 
Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit. The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI). For further details click here

Canada Emergency Business Account (CEBA). This program provides loans to small businesses to help them continue to operate during the COVID-19 pandemic. Interest-free, government guaranteed  loans of up to $40,000 will be available and $10,000 of the $40,000 loan is eligible for forgiveness if the remaining $30,000 is fully repaid on or before December 31, 2022. If the loan is not repaid by December 31, 2022, the debt is converted into a three year term loan, with an interest rate of 5%. To be eligible for the loan, a business or not-for-profit must have 2019 annual payroll between $50,000 and $1 million. The CEBA loans will be available the week of April 6th and businesses must apply through the financial institution that holds its primary Business Operating Account.
 
Ontario Government Acton Plan.
For businesses:
  • temporary increase to the Employer Health Tax (EHT) exemption to $1 million. For further information click here
  • Allowing employers to defer Workplace Safety and Insurance Board (WSIB) payments for up to six months. For further information click here
  • Providing five months of interest and penalty relief for businesses to file and make payments for the majority of provincially administered taxes.
  • Setting electricity prices for small business time-of-use customers at the lowest rate, 24 hours a day for 45 days
For individuals:
  • A one-time payment of $200 per child under 12 years of age and $250 for those with special needs.
  • Setting electricity prices for residential and farm time-of-use customers at the lowest rate, 24 hours a day for 45 days
  • Providing six months of Ontario Student Assistance Program (OSAP) loan and interest accrual relief.
  • Providing emergency child care options for health care workers, police officers, firefighters and correctional officers.
  • Expanding eligibility for the Low-income Energy Assistance Program (LEAP) and ensuring that electricity and natural gas services are not disconnected for nonpayment.
 
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As an essential service, our office continues to operate under a modified work protocol. We continue to encourage all clients who have not yet submitted their 2019 tax information to provide this to us as soon as it is ready. Although we are not able to meet with clients in person, we continue to communicate by telephone and email. Whilst we prefer to exchange documentation via our secure web-portal or by mail/courier/email, we will continue to accept the drop-off of client documentation to our office.   
 
Stay safe everyone !
 
Best regards,